Wednesday, February 17, 2016


Chat Room Excerpts & Highlights

Dinar Updates BGG News Time 2-16-16   

BGG: Like last nite - our esteemed News Researchers are welcome to join in...
BGG: All right - welcome to News Time here at DinarUpdates.com
BGG: Hey MadDScout - do you have that early article about the CBI??
BGG: That was some very big news... Oops - sorry..
MadDScout BGG: Central: We are responsible for the financial and currency auction unprepared for the exercise of this role
Tuesday, February 16, 2016 - 10:52
The Central Bank of Iraq, on Tuesday, he was in charge of holding the currency auction, between the Ministry of Finance is ready to exercise that role.

The governor of the bank on the Keywords "The central bank is responsible for holding the currency auction Under the law, which he considers responsible for the stability of the exchange rate," noting that "it is theoretically possible that the Ministry of Finance to conduct an auction currency, but in practical terms is possible."

Read More : http://www.dinarupdates.com/showthread.php?30093-Central-We-are-responsible-for-the-financial-and-currency-auction-unprepared-for-the
MadDScout BGG: He Keywords that "the Ministry of Finance is not interested in achieving the goals of monetary policy Castaqrar exchange, but is interested in obtaining as much as possible from the dinar from the sale of dollars without paying attention to the overall stability of prices or the exchange rate stability," explaining that "this process by type of risk can not the Ministry of Finance to bear. "

He continued, "The Ministry of Finance has historically not accustomed to exercise such a process so that the balance between sales of the dollar and the stabilization of the exchange rate," stressing that "the central bank has the mechanisms and tools and his outlook and the rules of his work and his ability to take control of this process."
Read More :
BGG: Looks a lot like - to me...
BGG: Alak is "beset" on all sides... looking like Abadi may replace him...
BGG: he's arguing the Ministry of Finance isn't "capable" of handling the auction process (wonder why he doesn't want to turn loose of it)...
BGG: It would appear there has been some conversation about handing the whole "flawed auction process" over to another entity... (or abandoning it altogether)...
BGG: Alak is swinging for the fences lately... he's deep trouble - IMHO
BGG: over the last few days - numerous articles out about "no confidence" in him...
BGG: potential removal...
BGG: then this bit about them handing over his "auction baby" to the MoF... (who BTW - along with the MoP have had a long term plan in place for the raising of the value of the Dinar...)
BGG: if you have any doubts it is the first thread in this forum EVERY DAY...
BGG: http://www.dinarupdates.com/forumdisplay.php?5-Current-Iraq-NEWS
BGG: read the full text of the one with the date... excerpts of the MoP documents are in there...
BGG: My take on this is -
BGG: whatever the final outcome - there seems to be some real movement (as there has to be) on the part of the GOI against the CBI - or bad CBI policy...and corruption...
BGG: looks like there is big movement underway - is this directly "Dinar-centric"??
BGG: It would be hard to see where it doesn't impact the value of the Dinar.
BGG: Further - this craziness by Alak talking about "selling" treasuries for the gov't and "allowing" the use of CBI reserves to the tune of 7 trillion (7 Billion USD) is pure foolishness... sounds like another squeeze-play... or something equally outrageous...
BGG: First off - the way it's worded sounds like a fishy way to send the GOI 7 Billion... (which puts the heat by 20 days??) not enough to REALLY MATTER.
BGG: second - after them threatening to remove him yesterday and he comes out today saying the MoF can't run the auctions, BTW - we'll figure out how to give the GOI 7 Bil in reserves AND please note the INCREDIBLE balance in the "auction process" today - ie; we've dealt with the corruption for now...
BGG: all looks a little weird to me...
BGG: I think there is a lot more to this story we don't know... but Alak under the gun is good (as far as I'm concerned).
BGG: (I meant to say - puts off the heat BY 20 days is all)... 7 Bil USD.
Meginhim: why are they selling dollars anyway?
BGG: part of their auction process and a way to imply/impart a steady value to their own currency. THEY CONTROL THE NUMBER EVERYDAY.
larrykn: ok got to ask what do you mean by putting off the heat by 20 days
BGG larrykn: Simple - while Alak may think he's saving his hide by offering the GOI some relief... it's not much... 7 Billion USD does little for Abadi's problem.
larrykn: it sounds like Alak is on his way out, I don't think offering money will help at this time, adibi is about to change him out
BGG larrykn: about 20 days worth... (roughly)...
BGG larrykn: I am hoping so... if they bounce him, settle in the new guy (or Turki - or...) and have an RV - you can blame the last 4 years on Maliki.
dale: With Abadi being the former of Finance Committee and with the leadership and character he's. shown dont you think he's wading through the sewer of politics and is just waiting for the right circumstances to replace Alak ...
larrykn: I do anyway
BGG dale: I was about to make that very point... Abadi KNOWS what this can do for him.
BGG dale: He's the former head of the Fin Committee... he's not lost here.
BGG dale: I am wondering what his consternation is though... there is some "method to his madness"
dale: Don't you think Abadi has known who Mr. Alak has been all along
BGG larrykn: Interestingly - GW Bush was just on Fox the other nite talking about his regular (weekly - sometimes daily) conversations with Maliki. While I hate to admit it - I think he was right... as soon as that "hands on" leadership was gone... he and everyone like him went RIGHT BACK to where they were 15 years ago.
BGG larrykn: as in Maliki...
larrykn: I agree
larrykn: gets to wonder what happens when they are on their own
BGG dale: Yes... but I also think Abadi has been gaining ground daily - think on this - it's only been a little over a year. Maliki is still trying to stay put in the "Presidential Palace" - JUST HAVING been ordered out a couple of days ago...
daytrader: We see the RV as our endgame, however for Iraq it is a hard commitment to a market economy which can’t be undone. It is their new beginning. Right now the auctions are the primary process, along with the money changers to pay for imports (since the dinar can’t be used out of country). It would appear that eliminating the auctions for us is the same as the rv. Why would the MoF even consider auctions since they appear very close to getting this done?
dale: Makes sense.
BGG daytrader: I see that as idle conversation - and Alak is rattled.
BGG daytrader: I don't think there is any way that is real.
daytrader: I agree, but it was the MoF who suggested they could do a better job.
BGG daytrader: which is more to my point - Alak under the threat of removal - the auctions might be shut down... or moved to the MoF...
daytrader: Works for me. In either case they will end'
BGG daytrader: I really think that might have been a "feigned reference" - ummmm - even we could do a better job and we don't even DO THAT!! lol
Meginhim: Does Abadi have total power to remove Alak? I heard somewhere that the 3 Presidents have to vote to remove the Gov of the CBI.
BGG Meginhim: Obviously - he does...
BGG Meginhim: and even if he didn't, you are only talking about Abadi, Jubouri and Massoum needing to be in agreement (not a big deal).
BGG Meginhim: Maliki put Alak in (overnite) - Abadi should be able to handle him quick...
BGG: OK gang - looks like that's about a wrap!!
BGG: Short and sweet!!  

mawhite daytrader: The IMF, Goi and CBI all have signed a Letter of Intent in which it is stated paragraph #19 that the government "will" move away from the MCPs which are in place because of the auctions. Remove MCPs, i.e. no auctions, means IQD must have international acceptance.
BGG wmawhite: Agreed - and while it sounds like Alak is desperate to keep things as they are - his fate is sealed...
daytrader wmawhite: Understood that from the LOI, which is why I was questioning the MoF even discussing taking over the auctions.
BGG wmawhite: especially in light of the LOI.
wmawhite daytrader: IMO..auctions are on a short life line.
daytrader wmawhite: We are all hoping S**N.
wmawhite daytrader: No hoping......the IMF stated in November that their expectation was for Iraq to enter the economy market the 1st half of 2016...........
wmawhite daytrader: All of this activity is IMO in support of Iraq's move into the international currency/commercial markets.
wmawhite daytrader: In order for Iraq to survive it's financial institutions must be able to operate both domestically and internationally..........thus all of what we are seeing.
daytrader wmawhite: I agree, but we would like to find an IMF employee that would tell us for sure what else needs to be done before they make the move>
wmawhite daytrader: the document is no different than a "game plan" and we can follow it and see it is being completed.

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